Roundup Of 3D Printing Market Forecasts And Estimates, 2014

3D printing’s potential to revolutionize manufacturing is quickly becoming a reality.

From relatively simple make-to-stock to complex, engineer-to-order production strategies in aerospace, defense, discrete and industrial production, 3D printing technologies are redefining the manufacturing value chain.  Investors including venture capitalists, wealth management firms and nearly every market research firm covering high technology has published 3D printing forecasts or market estimates.

A summarized list of 3D printing market forecasts and estimates is provided below:

• Canalys predicts the global 3D printing market will grow from $2.5B in 2013 to $16.2B by 2018, attaining a CAGR of 45.7% in the forecast period. For additional information see 3D printing market to grow to US$16.2B in 2018. The following table compares 2013, 2014 and 2018 forecasts and relative market growth by 3D printers, services and materials.

• IBISWorld forecasts the U.S. market for 3D printer manufacturing in the U.S. will reach $1.4B in 2014, attaining a Compound Annual Growth Rate (CAGR) of 22.8% from 2009 to 2014.  The U.S. market will grow at a CAGR of 15.7% from 2014 to 2019.  IBISWorld’s report includes market shares, and shows 3D SystemsCorporation with 19.5% followed by Stratasys with 18.4%. You can read the IBISWorld report, 3D Printer Manufacturing in the US, February 2014 here(free, no opt-in).

• IDC predicts that worldwide 3D printer unit sales and installed base will grow at a combined compound annual growth rate of 59% through 2017, with the value of shipments attaining a 27% CAGR in the forecast period.  IDC’s excellent presentation titled 3D Printing – A Transformative Opportunity for Print and Manufacturingwritten by Robert Parker and Keith Kmetz was part of the IDC Directions 2014 briefing sessions earlier this year.  The following slide from the presentation compares 3D printer market units, installed base and value of shipments. IDC also predicts the Average Selling Value will also drop at a -19% CAGR through 2017.

• The 3D Systems Investor and Analyst Day presentation given June 10, 2014 includes a series of market forecasts and estimates, including an in-depth overview of how 3D Systems is evaluating market opportunities for 3D printing in healthcare. The following graphic is from the 3D Systems Investor and Analyst Day presentation available here:

• 3D printers will grow from a $288M market in 2012 to $5.7B in 2017, attaining an 81.9% CAGR in the forecast period according to research by Wells Fargo Wealth Management.  According to this firm’s compiled research, shipments of 3-D printers are expected to grow at a CAGR of 95% a year from 2012 to 2017 with revenue expected to grow at 82% in the same forecast period.  Well Fargo Wealth Management found that 3-D printing revenue is estimated to have achieved just 8% of its global market potential as of 2014, making the market opportunity worth $21–$28 billion by 2017.  Wells Fargo Wealth Management published the reportBeyond 2014: Evolving Opportunities in Technology providing these insights and the following charts showing the growth of 3D printing shipments and revenue:

• Equity analysts’ forecasts for additive manufacturing (AM) or 3D printing range from $7B by 2020 on an 18% CAGR, to aggressive market scenarios reaching $21.3B by 2020 on a 34% CAGR. Morgan Stanley’s forecast are among the most bullish there are.  Deloitte presented these figures at the 2014 Engineering & Construction Conference Bridging Innovation in the Industry Disruptive Technologies and their Impact on E&C. You can find the presentation here and a graphic below from the presentation comparing market forecasts.

• Gartner forecasts that 3D printer shipments will grow to 1.1M units by 2017 attaining a CAGR of 95%, and end user spending will grow to $5.7B, attaining a CAGR of 82% in the forecast period.  The presentation 3D Printing: The Hype, Reality and Opportunities – Today written by Pete Basiliere of Gartner is available on SlideShare.  A PDF of the presentation is available to Gartner clients here.

• The market for 3D printing products and services grew to $3.07B in 2013 attaining a compound annual growth rate (CAGR) of 34.9%, the highest in 17 years according to Wohlers Associates.According to industry expert Wohlers Associates the growth of worldwide revenues over the past 26 years has averaged 27%, with the CAGR for the past three years (2011–2013) reaching 32.3%.For additional information see the Wohlers Report 2014 Uncovers Annual Growth of 34.9% for 3D Printing and Additive Manufacturing Industry. Wohlers Associates is one of the most knowledgeable firms tracking 3D printing, they have involved in this market for decades.

• 67% of manufacturers surveyed are currently implementing 3D printing either in full production or pilot and 25% intend to adopt 3D printing in the future. A study by Price Waterhouse Cooper (PwC) of 3D printing adoption in the global aerospace industry’s MRO (maintenance, repair and overhaul) parts market estimates $3.4B annual savings in material and transportation costs alone. PWC’s recent report published in June, 3D Printing and the New Shape of Industrial Manufacturing, provides a wealth of insights into the adoption of 3D printing in manufacturing. The following graphic from the report compares adoption rates by small and large firms.

• PwC predicts that within three to five years 3D printing technologies will be used for producing military, commerical and complex weapon parts and system components.  In the recent research note 3D Printing: A Potential Game Changer for Aerospace and Defense, PwC provided a 3D printing adoption map, which is shown below.  PwC observes that “as quality and speed continue to improve, 3D printing will become a viable process for an  ever-increasing number of applications, including traditional production parts. No one  knows how rapidly the technology will take to mature, but most experts believe it will  make significant strides within the next five years.”

Courtesy – Louis Columbus

Ideal Customer Experience

Our Contributor Fifth Gear developed this infographic to help businesses with their order fulfillment process to ensure a great customer experience. It's as easy as making sure the right customer gets the right products at the right time. It may seem obvious but shipping mistakes happen all the time and you can potentially lose customers because of it. Give your customers the option of getting status updates so they can track where their package is. Also, look at their buying history to see if you can include a free sample in their package or a discount on a complimentary product. Following these tips will give your customers a great experience and help with your customer loyalty.

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The Visual Side of Customer Service {Infographic}

The human brain processes images 60,000 times faster than text. Accordingly, 90 percent of all information that comes to the brain is visual.

On the web, it’s estimated that 55 percent of all traffic will be video by 2016, and mobile video traffic will increase by 1800 percent. YouTube, Instagram and Vine are currently the best platforms to maximise video engagement. However, I recently discovered an interesting video engagement enablement that engages your audience by making your online videos easier to browse, view, share and track at http://www.vinjavideo.com/… something I experimenting by myself these days.

Further, I would add that its important to view all these customer service or engagement channels in an holistic view rather than in isolation. I understand that few channels are important than others, however not having an updated content on one could lead to poor engagement. Therefore, no matter how many channel you would like to add into your marketing armory, you need to ensure that you have adequate resource to ensure an ongoing commitment and update to each channel. If you can’t maintain it then don’t start it. 

Courtesy Gryffin, this below infographic provides an interesting insight into the “Visual” element(s) of customer service.

E-Commerce Emergence in APAC

Let me starts with a big picture – Few days ago Flipkart (India #1 online e-commerce site) announced a $1 billion fundraising and incidentally Amazon announced additional $2 billion investment into its India expansion which suggests something brewing in the India market with a growth potential similar to China, where consumers spent almost $300 billion online last year and India where consumers are widely accepting the entire ecommerce way of life. Further, the two emerging markets both have massive populations of over one billion, buoyed by a rising middle class, rapid GDP growth and challenging infrastructure. India's internet retailing sector grew 20 percent last year by value, according to Euromonitor International. Not only that the new wave of online ecommerce companies are targeting shoes, mobile, tickets, but it has also started to revolutionize the education sector in India with India’s leading e-commerce companies such as Flipkart.com, Snapdeal.com and Groupon.co.in are offering online courses and coaching materials, and are even facilitating long duration certificate or business education degrees. Even an interesting concept like Aaramshop that allows your trusted neighborhood retailers to serve their community consumers through their customized web/mobile fronts - https://www.aaramshop.com/.

Now, let me also give you an interesting figure of smart phone sales and internet penetration in APAC.  The reason of sharing the below is to suggest the potential of all these consumer who are foraying into the world of smartphone, which will allow of a percentage of it to move into exploring the world of internet and subsequently buying things online. And I am not talking years here…The tectonic shift is happening at a much faster pace. This not only suggests that consumer are embracing “onlinility or being online” but equally transacting online.   One estimate suggests that Asia-Pacific consumers will account for more than 45% of digital buyers this year and it will expected to grow by 23%.  The mentioned figures certainly endorse my argument that rise of smartphone penetration will also contribute to this retail shift. What’s more, by lowering barriers to entry and removing the need for a physical presence in remote or underdeveloped areas, online retailing will give the traditional retailers the opportunity to expand more rapidly, especially in tier 2 or 3 cities; which historically has been challenging to serve. A recent such example of Xiaomi Mobile Launch in India through flipkart and they claim that the nearly 70% of their first batch order came from tier 2/3 cities which has never been the case in mobile history of India.

  On global perspective eMarketer projections suggest that B2C e-commerce sales will grow by more than 20 percent this year to reach US$1.5 trillion, and surpass US$2.3 trillion by 2017. Forrester Research projections indicate this growth will be partly driven by five of the largest online retail markets in the Asia-Pacific region – China, Japan, South Korea, India, and Australia – which will see e-commerce sales rise from US$398 billion in 2013 to US$858 billion in 2018 at a compound annual growth rate of more than 16 percent. The below chart articulates the share growth potential which is expected in APAC.

Now even if I take the consumer expenditure and disposable income OR age demographics into consideration (as below) , it’s all suggesting one growth direction – up north

Being an Indian and have worked in APAC for man years, I certainly believe in the immense potential that the APAC market has to offer.

With all the above data I am just trying to allude to one fact that I got multiple endorsements in my recent APAC trip when I met many retails and merchants who wants an easy and relative cheap solution to sell their good(s) to a wider audience including serving tier 2 or 3 markets by jumping on the e-commerce bandwagon but don’t know where to buy the ticket or get started with. This forced me to pen this post. I would certainly encourage e-commerce vendors to look it into the opportunity that market has to offer. While, I have more proof points, however I will hold on to that for a later post.

The Evolution of Marketing Data [Infographic]

Being a marketer, I am always a big fan of personalization of communication. Actually, its far easier than what most marketers think. The basic fundamental ingredient to this is how you manage your data and databases at the backend. Subsequently, its imperative for marketers to understand the touch points and the activities history/log of your consumers. If you can bring these ingredients then successful campaigns can only be a by product of that.

The below is an interesting info-graphics that shows an interesting evolution to personalization of communication. Though, I have to say, with all the tools and segmentation available, if marketers are still sticking to the 1960 then please don’t expect results of today. For being successful, you need to match the consumer to the channel to the message…and ensure you move from dissemination to conversation….. 

Data Driven Marketing

This info graphic based on a recent survey conduct with almost 1000 digital marketer and analysts by folks at Econsultancy provides a great insight into the importance of data in the entire whelm of marketing paradigm. This while advocates the fact that in any organization which is serious about marketing in this data age needs to elevate up on how they use or rather utilize their data to make the marketing decision. Further, the importance of data and its ability to understand and further base marketing decision and/or investment dollar base on deeper data analysis is not only good to have rather a fundamental element in today marketing world. The more you invest in understanding the data the better conversion yield you will get out of it.

And yes organizations need to invest in building these resources as its apparent by this graphic that alludes to skill shortages in areas like digital analytics tool, statistical modeling and conversion rate optimization.

Roundup Of Analytics, Big Data & Business Intelligence Forecasts And Market Estimates, 2014

From manufacturers looking to gain greater insights into streamlining production, reducing time-to-market and increasing product quality to financial services firms seeking to upsell clients, analytics is now essential for any business looking to stay competitive.  Marketing is going through its own transformation, away from traditional tactics to analytics- and data-driven strategies that deliver measurable results.

Analytics and the insights they deliver are changing competitive dynamics daily by delivering greater acuity and focus.  The high level of interest and hype surrounding analytics, Big Data and business intelligence (BI) is leading to a proliferation of market projections and forecasts, each providing a different perspective of these markets.

Presented below is a roundup of recent forecasts and market estimates:

• The Advanced and Predictive Analytics (APA) software market is projected from grow from $2.2B in 2013 to $3.4B in 2018, attaining a 9.9% CAGR in the forecast period.  The top 3 vendors in 2013 based on worldwide revenue were SAS ($768.3M, 35.4% market share), IBM ($370.3M, 17.1% market share) and Microsoft ($64.9M, 3% market share).  IDC commented that simplified APA tools that provide less flexibility than standalone statistical models tools yet have more intuitive graphical user interfaces and easier-to-use features are fueling business analysts’ adoption.  Source: http://www.idc.com/getdoc.jsp?containerId=249054

• A.T. Kearney forecasts global spending on Big Data hardware, software and services will grow at a CAGR of 30% through 2018, reaching a total market size of $114B. The average business expects to spend $8M on big data-related initiatives this year. Source: Beyond Big: The Analytically Powered Organization.

• Cloud-based Business Intelligence (BI) is projected to grow from $.75B in 2013 to $2.94B in 2018, attaining a CAGR of 31%. Redwood Capital’s recent Sector Report on Business Intelligence  (free, no opt in) provides a thorough analysis of the current and future direction of BI.  Redwood Capital segments the BI market into traditional, mobile, cloud and social business intelligence.   The following two charts from the Sector Report on Business Intelligence  illustrate how Redwood Capital sees the progression of the BI market through 2018.

• Enterprises getting the most value out of analytics and BI have leaders that concentrate more on collaboration, instilling confidence in their teams, and creating an active analytics community, while laggards focus on technology alone.  A.T. Kearney and Carnegie Mellon University recently surveyed 430 companies around the world, representing a wide range of geographies and industries, for the inaugural Leadership Excellence in Analytic Practices (LEAP) study.  You can find the study here.  The following is a graphic from the study comparing the characteristics of leaders and laggards’ strategies for building a culture of analytics excellence.

• The worldwide market for Big Data related hardware, software and professional services is projected to reach $30B in 2014.  Signals and System Telecom forecasts the market will attain a Compound Annual Growth Rate (CAGR) of 17% over the next 6 years.  Signals and Systems Telecom’s report forecasts Big Data will be a $76B market by 2020.  Source: http://www.researchandmarkets.com/research/s2t239/the_big_data

• Big Data is projected to be a $28.5B market in 2014, growing to $50.1B in 2015 according to Wikkbon. Their report, Big Data Vendor Revenue and Market Forecast 2013-2017 is outstanding in its accuracy and depth of analysis.  The following is a graphic from the study, illustrating Wikibon’s Big Data market forecast broken down by market component through 2017.

• SAP, IBM, SAS, Microsoft, Oracle, Information Builders, MicroStrategy, and Actuate are market leaders in BI according to Forrester’s latest Wave analysis of BI platforms. Their report, The Forrester Wave™: Enterprise Business Intelligence Platforms, Q4 2013 (free PDF, no opt in, courtesy of SAS) provides a thorough analysis of 11 different BI software providers using the research firm’s 72-criteria evaluation methodology.

• Amazon Web Services, Cloudera, Hortonworks, IBM, MapR Technologies, Pivotal Software, and Teradata are Big Data Hadoop market leaders according to Forrester’s latest Wave analysis of Hadoop Solutions. Their report, The Forrester Wave™: Big Data Hadoop Solutions, Q1 2014 (free PDF, no opt in, courtesy of MapR Technologies) provides a thorough analysis of nine different Big Data Hadoop software providers using the research firm’s 32-criteria evaluation methodology.

• IDC forecasts the server market for high performance data analysis (HPDA) will grow at a 23.5% compound annual growth rate (CAGR) reaching $2.7B by 2018. In the same series of studies IDC forecasts the related storage market will expand to $1.6B also in 2018. HPDA is the term IDC created to describe the formative market for big data workloads using HPC. Source: http://www.idc.com/getdoc.jsp?containerId=prUS24938714

• Global Big Data technology and services revenue will grow from $14.26B in 2014 to $23.76B in 2016, attaining a compound annual growth rate of 18.55%. These figures and a complete market analysis are available in IDC’s Worldwide Big Data Technology and Services 2012 – 2016 Forecast.  You can download the full report here (free, no opt-in): Worldwide Big Data Technology and Services 2012 – 2016 Forecast.

• Big Data technology and services will grow from $1.95B in 2013 to $9.83B in 2020, attaining a CAGR of 26%. These and other market forecasts and projections are in a report Huawei sponsored titled Big Data & Advanced Analytics in Telecom: A Multi-Billion-Dollar Revenue Opportunity.  A chart from the study is shown below that shows Big Data analytics market size by business category.

• Financial Services firms are projected to spend $6.4B in Big Data-related hardware, software and services in 2015, growing at a CAGR of 22% through 2020. Software and internet-related companies are projected to spend $2.8B in 2015, growing at a CAGR of 26% through 2020.  These and other market forecasts and projections can be found in Bain & Company’s Insights Analysis, Big Data: The Organizational Challenge.  An infographic of their research results are shown below.

• The World Economic Forum, INSEAD and Cornell University published The Global Information Technology Report 2014 Rewards and Risks of Big Data (369 pp., free, no opt-in), providing a thorough global analysis of technology trends.  This book provides a thorough overview of the Networked Readiness Index and in-depth analysis by national ICT adoption levels.  One of the more valuable sections is on Big Data adoption, with a summarized analysis presented below. You can download the entire book in PDF form here.

Courtesy – Louis Columbus